Crypto-Economic Aspects of the EthicHub Financing Model
Interview
The Crypto-Economic Aspects of the EthicHub Financing Model
From an interview of Blockchain for Good with the founder, Jori Armbruster. Translated from the French.
- "BfG: Let's start with the stablecoin* lending solution you are developing. How do the farmers convert the xDAI into their local currency?
JA: For conversions, we rely on established exchange platforms. For example, in Mexico, it's Bitso. The farmer cooperatives we work with receive the xDAI, convert it to Mexican pesos via Bitso, and send the funds to their members."
* BfG: Why did you choose xDAI?
JA: When we launched Ethic Hub in 2018, we were on Ethereum, because at the time it was almost the only operational blockchain that allowed us to do what we wanted to do. However, we migrated to xDAI because the fees* were much lower, at a time when Ethereum's success had made its fees unaffordable. Furthermore, xDAI allowed us to use the same stablecoin to pay for fees and invest in loans, which is very convenient for users.
* BfG: You also work with Celo, don't you?
JA: Absolutely! For Celo, it was both their low fees and their focus on impact projects that led us to integrate them into our solution. Furthermore, Celo is focused on building easy-to-use wallets for mobile phones, which would allow us in the medium term to lend directly to farmers, without going through cooperatives. Celo also wants to build as diverse a stablecoin ecosystem as possible. For example, they want to create a stablecoin in Mexican pesos, which would be very interesting for the communities we work with."